A consumer has a monthly income of $100 that he wants to spend on two goods: rugs priced at $10 and chairs priced at $5.
Posted: Mon May 02, 2022 7:46 am
A consumer has a monthly income of $100 that he wants to spend
on two goods: rugs priced at $10 and chairs priced at $5.
2.1 What is the consumer's opportunity cost of buying a rug?
2.2 What is his opportunity cost of buying a chair?
2..3 Complete the following table illustrating the consumer's
choices within his budget constraint.
TOTAL COST
RUGS
CHAiRS
100
0
100
1
100
2
100
3
100
4
100
5
100
6
100
7
100
8
100
9
100
10
2.4 Assuming this is a linear relationship, choose two
points and compute the slope (assume the Y axis to represent RUGS
and the X-axis to represent CHAIRS
on two goods: rugs priced at $10 and chairs priced at $5.
2.1 What is the consumer's opportunity cost of buying a rug?
2.2 What is his opportunity cost of buying a chair?
2..3 Complete the following table illustrating the consumer's
choices within his budget constraint.
TOTAL COST
RUGS
CHAiRS
100
0
100
1
100
2
100
3
100
4
100
5
100
6
100
7
100
8
100
9
100
10
2.4 Assuming this is a linear relationship, choose two
points and compute the slope (assume the Y axis to represent RUGS
and the X-axis to represent CHAIRS